Beijing Municipality, Transfer of Non-operating Assets of Bankrupt Enterprises Tentative Measures

Promulgated: April 3 2002
Applicability: For the purposes of these Measures, "non-operating assets of bankrupt enterprises" refers to assets formed with State allocated funds or the enterprise's investments but not used in the production or operation of the enterprise, including employee housing premises, schools, kindergartens and hospitals, as well as related common facilities (Article 2).

Main contents: The Measures provide that after an enterprise is declared bankrupt, its non-operating assets shall be transferred to the entities designated by the district/county people's government (Article 5). In principle, such transfer shall be free of administrative charge (Article 6). The assets shall be transferred at the value recognized in the liquidation audit report and no further valuation is required (Article 7). A transfer proposal that list non-operating asset assets and their current circumstances shall be drawn up by the liquidation team of the bankrupt enterprise and submitted to the Municipal Enterprise Merger, Bankruptcy and Employee Re-employment Coordinating Team for approval (Articles 13 and 15). If the proposal is approved, the relevant district/county government shall be notified and shall then designate the entities to take over the assets (Articles 15 and 16). The designated entities shall enter into a transfer and takeover agreement with the liquidation team of the enterprise (Article 17). The approval notice and the transfer and takeover agreement will be required for completion of the Measures for asset title transfer (Article 18).